RA'ANANA, Israel and
RIVER EDGE, New Jersey,
Nov. 14, 2016 /PRNewswire/
-- Mer Telemanagement Solutions Ltd. (MTS or the
Company) (Nasdaq Capital Market: MTSL), a global provider of
software solutions for online video advertising and
telecommunications management, today announced its financial
results for the third quarter of 2016.
MTS's revenues for the third quarter of 2016 totaled
$3.3 million compared with
$3.8 million in the third quarter of
2015 and $3.4 million in the second
quarter of 2016. On a GAAP basis, the Company's net loss for the
quarter totaled ($494,000), or
($0.06) per diluted share, compared
with ($405,000), or ($0.05) per diluted share, for the third quarter
of 2015. On a non-GAAP basis (as described and reconciled below),
net loss for the quarter was ($237,000), or ($0.03) per diluted share, compared with a net
loss of ($163,000), or ($0.02) per diluted share, for the third quarter
of 2015.
Revenues for the first nine months of 2016 were $10.0 million compared with $10.5 million for the comparable period in 2015.
Net loss for the period totaled ($740,000) or ($0.09) per diluted share, compared with
($880,000) or ($0.13) per diluted share in the first nine
months of 2015. On a non-GAAP basis (as described and reconciled
below), net income for the nine-month period was $57,000 or $0.01
per diluted share, compared with net income of $132,000, or $0.02
per diluted share, for the first nine months of 2015.
Commenting on the results, Orey
Gilliam, Chief Executive of MTS said, "I am pleased that our
Advertising business activity continues to be strong despite the
seasonality effect of the third quarter. We continue to make
progress in implementing our strategy to enhance Vexigo's position
as a leader in the Video Advertising space. We are moving
forward with additional investments in our technology and products
to differentiate our services and to automate our operations. We
expect to benefit from the market's winter-holiday strength, and
believe in its future growth potential.
"Our TEM and Billing division maintained its level of dependable
performance by delivering yet another quarter of steady revenues.
We continue to successfully execute our strategy of migrating
clients to the cloud with multi-year service contracts. We are also
moving forward to enhance our telecommunication product lines while
exploring the potential for new opportunities with our partners and
customers.
"Overall, MTS remains focused on our core business lines while
closely monitoring and reducing our overall costs in non-profitable
activities", concluded Mr. Gilliam.
In accordance with general accepted accounting policy, the
Company accounts for a portion of its Video Advertising revenues
and the cost of revenues derived from third-party arrangements on a
net basis. Video Advertising revenues for the third quarter and
nine months ended September 30, 2016
totaled $1.4 million and $4.6 million respectively. If these revenues had
been presented on a gross basis, Video Advertising revenues would
have increased by approximately $3.1
million to $ 4.5 million in
the third quarter of 2016 and by $8.0
million to $ 12.6 million for
the nine months ended September 30,
2016, while gross profit would have remained unchanged.
Non-GAAP Financial Measures
This release includes revenues, cost of revenues, net income and
basic and diluted earnings per share calculated on a non-GAAP
basis. The non-GAAP measures exclude the following items:
- M&A expenses related to the Vexigo acquisition
- Amortization of intangible assets, net of tax effects
- Stock-based compensation expenses
MTS's management believes that the presentation of non-GAAP
measures provides useful information to investors and management
regarding financial and business trends that relate to the
Company's operating results and cash generation capabilities. These
non-GAAP financial measures are not in accordance with, or an
alternative for, generally accepted accounting principles and
differ from non-GAAP financial measures used by other companies. In
addition, these non-GAAP financial measures are not based on any
comprehensive set of accounting rules or principles. To achieve an
accurate overall picture of the Company's results of operations,
MTS advises the reader to consider the non-GAAP financial measures
in conjunction with their corresponding GAAP measures.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) provides video
advertising solutions for online and mobile platforms and
Telecommunications Management solutions and services.
MTS's subsidiary, Vexigo (www.vexigo.com), develops highly
sophisticated video advertising solutions for online and mobile
platforms, and uses them to offer advertising optimization services
to advertisers and website owners.
MTS's telecommunications business provides innovative products
and services for enterprises in the areas of telecom expense
management (TEM), enterprise mobility management (EMM), mobile
virtual network operators/enablers (MVNO/MVNE) and IOT/M2M
enablement for mobile service providers.
Headquartered in Israel, MTS
markets its solutions through wholly-owned subsidiaries in
Israel, the U.S and Hong Kong, as well as through distribution
channels. For more information please visit the MTS web site:
www.mtsint.com.
Certain matters discussed in this news release are
forward-looking statements that involve a number of risks and
uncertainties including, but not limited to, risks in product
development plans and schedules, rapid technological change,
changes and delays in product approval and introduction, customer
acceptance of new products, the impact of competitive products and
pricing, market acceptance, the lengthy sales cycle, proprietary
rights of the Company and its competitors, risk of operations in
Israel, government regulations,
dependence on third parties to manufacture products, general
economic conditions and other risk factors detailed in the
Company's filings with the United States Securities and Exchange
Commission.
|
CONSOLIDATED
BALANCE SHEETS
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
Unaudited
|
|
Audited
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,625
|
|
$
3,444
|
|
Restricted
cash
|
|
655
|
|
231
|
|
Restricted marketable
securities
|
|
142
|
|
134
|
|
Trade receivables,
net
|
|
4,860
|
|
4,485
|
|
Other accounts
receivable and prepaid expenses
|
|
169
|
|
103
|
|
|
|
|
|
|
Total current
assets
|
|
8,451
|
|
8,397
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Severance pay
fund
|
|
750
|
|
668
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET
|
|
188
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
Goodwill
|
|
8,298
|
|
8,298
|
|
Other intangible
assets, net
|
|
4,117
|
|
4,461
|
|
|
|
|
|
|
Total other
assets
|
|
12,415
|
|
12,759
|
|
|
|
|
|
|
Total assets
|
|
$
21,804
|
|
$
21,984
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
September
30,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
Unaudited
|
|
Audited
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
$ 3,297
|
|
Trade
payables
|
|
$ 4,007
|
|
|
Deferred
revenues
|
|
1,850
|
|
1,826
|
|
Accrued expenses and
other liabilities
|
|
2,643
|
|
2,205
|
|
Liabilities related
to Vexigo acquisition
|
|
1,200
|
|
1,300
|
|
Liabilities of
discontinued operations
|
|
105
|
|
105
|
|
|
|
|
|
|
Total current
liabilities
|
|
9,805
|
|
8,733
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Accrued severance
pay
|
|
916
|
|
798
|
|
Liabilities related
to Vexigo acquisition
|
|
4,211
|
|
5,624
|
|
Deferred tax
liability (*)
|
|
585
|
|
680
|
|
Total long-term
liabilities
|
|
5,712
|
|
7,102
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Share
capital
|
|
23
|
|
21
|
|
Additional paid-in
capital
|
|
26,517
|
|
25,648
|
|
Treasury
shares
|
|
(29)
|
|
(29)
|
|
Accumulated other
comprehensive loss
|
|
(1)
|
|
(8)
|
|
Accumulated
deficit
|
|
(20,223)
|
|
(19,483)
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
6,287
|
|
6,149
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$ 21,804
|
|
$ 21,984
|
|
(*)
Reclassified
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
|
Nine months
ended
September
30,
|
|
Three months
ended
September
30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
$
4,417
|
|
$
4,599
|
|
$
1,508
|
|
$
1,917
|
|
|
Product
sales
|
|
977
|
|
1,185
|
|
369
|
|
305
|
|
|
Video
Advertising
|
|
4,629
|
|
4,692
|
|
1,415
|
|
1,604
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
10,023
|
|
10,476
|
|
3,292
|
|
3,826
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
|
|
Services
|
|
2,136
|
|
2,283
|
|
737
|
|
1,083
|
|
|
Product
sales
|
|
438
|
|
468
|
|
151
|
|
209
|
|
|
Video
Advertising
|
|
2,205
|
|
3,096
|
|
890
|
|
1,200
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of
revenues
|
|
4,779
|
|
5,847
|
|
1,778
|
|
2,492
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
5,244
|
|
4,629
|
|
1,514
|
|
1,334
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
1,741
|
|
1,271
|
|
649
|
|
507
|
|
|
Selling and
marketing
|
|
1,702
|
|
1,619
|
|
574
|
|
555
|
|
|
General and
administrative
|
|
2,525
|
|
2,693
|
|
844
|
|
757
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
5,968
|
|
5,583
|
|
2,067
|
|
1,819
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(724)
|
|
(954)
|
|
(553)
|
|
(485)
|
|
|
Financial income
(expenses), net
|
|
-
|
|
21
|
|
(6)
|
|
(30)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before taxes on
income
|
|
(724)
|
|
(933)
|
|
(559)
|
|
(515)
|
|
|
Taxes on income (tax
benefit)
|
|
16
|
|
40
|
|
(65)
|
|
(59)
|
|
|
Net loss from
continuing operations
|
|
(740)
|
|
(973)
|
|
(494)
|
|
(456)
|
|
|
Net income from
discontinued operations
|
|
-
|
|
93
|
|
-
|
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
(740)
|
|
$
(880)
|
|
$
(494)
|
|
$
(405)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per Ordinary share
|
|
$
(0.09)
|
|
$
(0.13)
|
|
$
(0.06)
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of Ordinary shares used in
computing basic and diluted net loss per share
|
|
8,367,618
|
|
6,906,838
|
|
8,691,855
|
|
8,043,290
|
|
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
Nine months
ended
September
30,
|
|
Three months
ended
September
30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
(740)
|
|
(880)
|
|
(494)
|
|
(405)
|
|
|
M&A expenses
related to the acquisition of Vexigo Ltd.
|
|
-
|
|
424
|
|
-
|
|
-
|
|
|
Stock-based
compensation expenses
|
|
170
|
|
123
|
|
48
|
|
51
|
|
|
Amortization of
intangible assets
|
|
627
|
|
465
|
|
209
|
|
191
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
(loss)
|
|
$
57
|
|
$
132
|
|
$
(237)
|
|
$
(163)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP basic and
diluted net loss per ordinary share
|
|
$
(0.09)
|
|
$
(0.13)
|
|
$
(0.06)
|
|
$
(0.05)
|
|
|
Non-GAAP basic and
diluted net income (loss) per
ordinary share
|
|
$
0.01
|
|
$
0.02
|
|
$
(0.03)
|
|
$
(0.02)
|
|
|
Weighted average
number of ordinary shares used in computing non-GAAP basic net income per
share
|
|
8,367,618
|
|
6,960,738
|
|
8,691,855
|
|
8,043,290
|
|
|
Weighted average
number of ordinary shares used in
computing non-GAAP diluted net income per
share
|
|
8,371,432
|
|
6,960,738
|
|
8,691,855
|
|
8,043,290
|
|
Company Contact:
Alon Mualem
CFO
Tel: +972-9-7777-540
Email: Alon.Mualem@mtsint.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mts-announces-third-quarter-2016-financial-results-300362047.html
SOURCE Mer Telemanagement Solutions Ltd. (MTS)